(no position)2004-12-06 12:28:18
ATSI Reduces Liabilities by $2.2 Million
Debt Resolution Improves Balance Sheet by $2.7 Million
130% Increase in 1st Quarter Revenues
SAN ANTONIO, TX -- (MARKET WIRE) -- 12/06/04 -- ATSI Communications, Inc. (OTC BB: ATSX)
announced today that the company has converted several debt obligations to
equity and reduced its liabilities by $2.2 million. The Company also
negotiated and converted a $500,000 current liability to a long-term note.
This debt resolution activity resulted in a $2.7 million improvement to the
company's current liabilities and balance sheet.
The Company also announced today that total revenues for the 1st quarter
ended October 31, 2004 were approximately $842,000 or a 130% increase over
the quarter ended July 31, 2004 and a 1022% increase over the previous
year's 1st quarter ended October 31, 2003. The revenue increase was
primarily due to growth in ATSI's Voice over Internet Protocol ("VoIP")
carrier business unit since implementing its NexTone VoIP soft-switch in
June 2004.
ATSI President and CEO, Arthur L. Smith stated, "Upon successfully
completing our reincorporation, management set some specific goals as it
pertains to improving our balance sheet. We made significant progress
recently and will continue to pursue objectives that will improve the
company's financial condition." Smith further stated, "Our debt
resolution activities will also impact our income statement for the 1st
quarter resulting in a significant improvement to net income. Management
is committed to continue this type of improvement in all areas of our
business."
ATSI Communications, Inc. is an emerging international carrier serving the
rapidly expanding niche markets in and between Latin America and the United
States, primarily Mexico. ATSI believes that it has clear advantages over
its competition through its unique concession license in Mexico,
interconnection and service agreements, and strategic partnerships with
established carriers and network operators in Latin America.
This news release contains forward-looking statements. These statements
describe management's beliefs and expectations about the future. We have
identified forward-looking statements by using words such as "expect,"
"believe," and "should." Although we believe our expectations are
reasonable, our operations involve a number of risks and uncertainties, and
these statements may turn out not to be true. More detailed information
about ATSI Communications, Inc. is available in the Company's public
filings with the Securities and Exchange Commission.
Contact:
ATSI Communications, Inc.
E-mail: investorinfo@atsi.net
Web Site: www.atsi.net
[This message has been edited by Phoenixx (edited December 06, 2004).]
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